Rupee Rises 16 Paise Against Dollar; Settles At 74.46Page Visited: 6
The rupee rose 16 paise to close at 74.46 (provisional) against the US dollar on Tuesday (November 17). At the interbank foreign exchange market, the rupee rose 22 paise to 74.40 against US dollar in early trade. The global risk sentiment continues to remain positive. After Pfizer, Moderna’s vaccine trials have yielded promising results as trials indicate it is 94.5 per cent effective in preventing Coronavirus and vaccine also does not need to be stored at ultra low temperatures unlike Pfizer’s.
“Rupee saw some weakness as RBI bought dollar in spot and then undertook sell/buy swap in forward to neutralize rupee liquidity. The apex bank through nationalized banks were seen buying dollar in spot market at around Rs 74.40 mark levels today to keep rupee from appreciating due to inflows into local stocks and weak dollar owing to news of another promising vaccine,” said Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.
On the domestic equity market front, the BSE index settled 314.73 points to close at a record high of 43,952.71, and the NSE Nifty surged 93.95 points to 12,874.20.
”The rupee is likely to open stronger around 74.40 and trade between 74.25-74.55 range intraday. For the week we expect a range of 73.90-74.90. USDINR has again respected it’s technical level around 74.95. The Rupee overvaluation (as measured by 36 country REER) has corrected by 3.5 per cent since the beginning of October on account of relentless Dollar buying by the RBI”, said Mr. Abhishek Goenka, Founder and CEO, IFA Global.